Every week we will be delving into the world of Hotel Property thanks to our friends The Hotel Property Team (THPT). We will be covering 5 recent deals that has taken place over the last 7 days with insights from THPT Managing Partner, Dev Anand.
Rogue City Hotels Gets Green Light for 57-bed Cambridge Flagship
Cambridge City Council has granted planning permission for the conversion of the former police and fire station, Hobson House, into a 57 all-suite luxury boutique hotel and tearoom.
Operating under the Rogue City Hotels brand, it will see key features of the Grade II-listed building preserved, restored and opened up to the public after decades in various uses.
Hobson House was built in 1901 on St Andrew’s Street and sits on a site that is connected to a charity founded by Thomas Hobson, the 17th century Cambridge philanthropist from where the phrase ‘Hobson’s Choice’ derives.
THPT Comment – Look forward to hearing more from the progressive new hotel company, Rogue City Hotels – love the name!
Eldorado Resorts to Acquire Caesars Entertainment in US$17.3bn Deal
Eldorado Resorts has agreed a $17.3 billion (£13.6 billion) deal to acquire gaming giant Caesars Entertainment.
The deal will create one of the largest gambling ventures in the United States, with around 60 casino resorts and gaming facilities spread across the country.
Caesars owns 34 casinos – including the Las Vegas-based Caesars Palace, which has hosted major sports and music events – but has struggled in recent years.
Eldorado hopes the deal will give it the scale to compete with major players such as Las Vegas Sands and Wynn Resorts.
Eldorado brands include Circus Circus, Silver Legacy, Isle Capri and Lady Luck.
THPT Comment – Well that put paid to MGM’s ambitions in recent months when valuations of $22bn were being bandied about. Price per key (not bad at just $500k) is not really the prize…the casinos are! Well done Eldorado.
Legoland Owner Merlin Entertainments Agrees £4.8bn offer
In the words of the film, everything appears to be “awesome” in the world of Lego as it expands its empire by snapping up Legoland and Madame Tussauds owner Merlin Entertainments
The Danish billionaire family that controls the Lego toy firm, with other investors, is paying £4.8bn for Merlin.
Kirkbi Invest says it has the money and experience to “realise the company’s potential to grow”.
Merlin also owns the London Eye, Alton Towers and Chessington Adventures.
Kirkbi already owns almost a third of the shares in Merlin Entertainments, and says it does not expect the deal to lead to any significant changes.
All existing Merlin attractions in the UK will remain open and it has no plans to sell any part of the business, it said.
THPT Comment – Not quite hotels, but close…although there is a hotel at Alton Towers, owned by Nick Leslau’s Prestbury Investments and run by Merlin Entertainments. The Gardaland Magic Hotel in Italy, opened this month brings their total hotel inventory to 4,500 rooms.
Scottish group Perle Hotels Adds a 5th Property in the Scottish Highlands
Scottish group Perle Hotels has added a fifth property, buying the Glencoe House hotel in the Scottish Highlands. It is the group’s second purchase this year, after it bought an Inverness property in February.
The Glencoe has been refurbished by the selling owners, who took it on in 2010. Perle, which launched in 2014, has two hotels on the Isle of Skye, and properties in Oban and Inverness.
Glencoe House, which offers loch and mountain views and now has 14 suites, was built by Lord Strathcona in 1896.
THPT Comment – This small hotel group, Perle, has made great strides since it’s start in 2014.
Neville Hotels Acquires Druid’s Glen Hotel and Golf Resort in Ireland
The North Wicklow resort, which has hosted four Irish Open golf championships, is owned by three Irish families – the Lappins, the Hurleys and the Flinns.
Obalus Hotel Company Ltd (the firm behind the Druid’s Glen hotel) accounts show it returned to pre-tax profitability in 2017.
The pair expect to open the first two hotels in Shanghai and Beijing by late 2020. The properties will cater for the country’s growing band of road warriors and business travellers.
The five-star, 145-room hotel and golf resort boasts two 18-hole championship golf courses on which it has hosted four Irish Open golf championships. Additional facilities on the Druid’s Glen Hotel include a spa, fitness centre, and extensive food & beverage and conference facilities.
The clubhouse at the property, known as Woodstock House, dates back to 1770 and was once used as a writing and recording base by musicians, including Mike Oldfield and Rod Stewart.
THPT Comment – Good for Obalus that Druid’s Glen has sold, albeit at a reasonable cost…The K Club still unsold after being on the market for a year plus.
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between them, they provide a range of skills and experience which is directly relevant to those involved in the hotel property market.
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